Wednesday, August 14, 2013

Why Jim Rogers is Shorting India

I used to own tourist companies in India at a time. India should have had the greatest tourist companies in the world. If you can only visit one country in your life, my goodness, it should be India—it is an astonishingly spectacular place to visit. There is no place that has the depth of culture that India has. Yes, I have new reasons to short India—just read its newspapers everyday and you will see why.

The government goes from one mistake to another—no matter what the controls are, no matter how much the debt keeps rising, Indian politicians are only looking for scapegoats. Look at the latest thing with gold—Indian politicians want to blame the problems of their economy on someone else, and now it is gold. Gold is not causing India problems, but it is quite the contrary. Exchange controls in India are absurd, the regulations that India puts in place result in foreigners going through 70 loops before they can invest in India. Foreigners cannot invest in commodities in India.

India should have been among the world’s greatest agriculture nations—you have the soil, the people, the weather, but it is astonishing that you have not become one—it is because Indian politicians, in their wisdom, have made it illegal for farmers to own more than five hectares of land. What the hell—can a farmer with just five hectares compete with someone in Australia or Canada? Even if you put together the land in all your family, it is still not possible to compete. Much as I love India, I am not a fan of its government. Every one year, they (Indian government) come up with more reasons for me to be less optimistic about that country.

India’s major equity benchmark the BSE 30

The more a country’s economy becomes politicized and the more their government engages in bubble blowing activities resulting to inflated asset prices, this usually makes for an attractive ‘short’ opportunity.

No comments:

About Me

About Me 2.0

Trade the Philippine stock market.

For inquiries, my email address: benson.te@gmail.com

I am a licensed agent and trader-analyst for MDR Securities

Advisory:

Since I am anticipating the worst, I am exploring other work options. I hope you can help. I am open to (non-property and non-equity market) copy writing projects or to other (freelance or even formal) work. If you have any suggestions or proposals, pls email me at the above address. No spam please

Testimonials

"Of all the articles covering that particular event, we found yours to be the most concise and well-written – for this, I’d like to express my appreciation and sincere hope that the great work continues on Prudent Investor Newsletters. I’m sure our readers will agree and find the extra information useful."

Bubbles do not produce new goods and services. They don’t create new wealth. For example, there was a copper bubble from 2009 to 2011. T...

Favorite Quotes

Favorite quotes:

Everything that happens in the social world in our time is the result of ideas. Good things and bad things. What is needed is to fight bad ideas. We must fight all that we dislike in public life. We must substitute better ideas for wrong ideas. We must refute the doctrines that promote union violence. We must oppose the confiscation of property, the control of prices, inflation, and all those evils from which we suffer.-Ludwig von Mises

Society lives and acts only in individuals; it is nothing more than a certain attitude on their part. Everyone carries a part of society on his shoulders; no one is relieved of his share of responsibility by others. And no one can find a safe way out for himself if society is sweeping towards destruction. Therefore everyone, in his own interests, must thrust himself vigorously into the intellectual battle. None can stand aside with unconcern; the interests of everyone hang on the result. Whether he chooses or not, every man is drawn into the great historical struggle, the decisive battle into which our epoch has plunged us. -Ludwig von Mises

It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a "dismal science." But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance.-Murray N. Rothbard

The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design -Friedrich von Hayek

When goods don't cross borders, armies will-Frederic Bastiat

If you give a man a fish, you feed him for a day. If you teach a man how to fish, you feed him for a lifetime.-Confucius

First they ignore you, then they laugh at you, then they fight you, then you win- Mahatma Gandhi (misattributed) original-Nicholas Klein

Facts do not cease to exist because they are ignored--Aldous Huxley

**

Psalm 23:

-The Lord is my shepherd; I shall not want.

-He maketh me to lie down in green pastures: he leadeth me beside the still waters.

-He restoreth my soul: he leadeth me in the paths of righteousness for his name's sake.

-Yea, though I walk through the valley of the shadow of death, I will fear no evil: for thou art with me; thy rod and thy staff they comfort me.

-Thou preparest a table before me in the presence of mine enemies: thou anointest my head with oil; my cup runneth over.

-Surely goodness and mercy shall follow me all the days of my life: and I will dwell in the house of the Lord for ever.